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Difficulty: EasyFraud and False Statements (18 U.S.C. 1033 and 1034)

David was found guilty of a felony involving a breach of trust five years ago. He is currently interviewing for a position at a large health insurance company. According to federal regulations (18 U.S.C. 1033), which action is legally required before David can lawfully work in this industry?

  1. The state's highest insurance regulatory official must grant him specific permission in writing.Answer
  2. B
    The insurance regulator must enact a new state statute that specifically pardons his past offense.
  3. C
    David must submit a formal request to the state Guaranty Association to receive an employment exemption.
  4. D
    The hiring company must issue a conditional receipt guaranteeing his good behavior during a probationary period.

Answer

The state's highest insurance regulatory official must grant him specific permission in writing.
Under 18 U.S.C. 1033, any individual who has been convicted of a felony involving dishonesty or a breach of trust is strictly prohibited from participating in the business of insurance. The only way to legally overcome this federal restriction is to obtain an official waiver, which takes the form of explicit, written consent from an authorized state insurance regulatory official, such as a Commissioner, Director, or Superintendent.

Step-by-Step Solution

1
Analyze the scenario regarding the applicant's background.
David has a felony conviction for a breach of trust.
Identifying the nature of the crime is necessary to determine which federal regulations apply to his employment in insurance.
2
Identify the relevant federal law governing this situation.
18 U.S.C. 1033 applies to individuals with felonies involving dishonesty or breach of trust.
This specific statute explicitly regulates the employment of such individuals in the business of interstate insurance.
3
Determine the legal requirement established by 18 U.S.C. 1033 for this scenario.
The law strictly prohibits his employment unless an official exception is granted via written consent from a state insurance regulator.
This is the core federal requirement to waive the prohibition and legally engage in the insurance business.

Key Concept

18 U.S.C. 1033 Written Consent Requirement
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Topics

Fraud and False Statements (18 U.S.C. 1033 and 1034)

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